US warnings precede Dutch intervention in Nexperia takeover
US authorities warned the Netherlands that Nexperia, the Dutch chipmaker majority-owned by a Chinese company, might face export hurdles to the United States if its chief executive remained Chinese. The revelations come from court papers cited in the ongoing saga over the company’s governance and national security implications.
Documents released this week indicate that US officials conveyed concerns to Dutch officials as early as June, arguing that the continued leadership of Zhang Xuezheng could complicate export controls and technology transfers to the US. The warnings appear to have foreshadowed a broader intervention by the Dutch government, which ultimately invoked a cold war-era law to take control of Nexperia following mounting concerns about security of supply for European chip manufacturing.
What triggered the Dutch government’s intervention?
Late on Sunday, the Netherlands announced it had used the Availability of Goods Act—a rarely invoked tool—to effectively assume control of Nexperia. The government cited “major shortcomings that could jeopardise security of supply” for European factories. By then, Zhang Xuezheng had already been suspended as chief executive, with the company’s ownership structure rooted in Wingtech, a Chinese technology group.
The court documents show that the Dutch intervention sought to prevent potentially risky technology transfers to Wingtech and to ensure operational continuity across Europe’s semiconductor supply chain. Nexperia, which has facilities in several countries, is key for wafer production and other critical components used across the region.
US concerns and the Wingtech connection
The US has long viewed Wingtech with suspicion due to its ties to Chinese authorities and its role in securing advanced manufacturing capabilities. Washington placed Wingtech on its entity list last year for alleged involvement in helping China acquire sensitive semiconductor capacity. In September, the list was extended to include Wingtech subsidiaries, intensifying export restrictions that could affect Nexperia’s export eligibility.
Wingtech’s 30% ownership by Chinese government-affiliated entities and investment funds has added to the scrutiny. Dutch officials indicated that the CEO’s status as a Chinese national and owner has been a central point of concern, with US officials signaling that leadership changes might be necessary to normalize export flows.
Repercussions and responses
Following the Dutch move, Wingtech described the intervention as excessive and politically biased, arguing that non-Chinese executives at Nexperia had attempted to alter equity structures through legal channels in what it called a “cloaked power grab.” The company contends that the Dutch action disrupts normal corporate governance and jeopardises the interests of employees and suppliers across Europe.
Meanwhile, the Dutch government said the action protects Europe’s strategic semiconductor interests and the livelihoods dependent on local chip supply chains. Dutch Economy Minister Vincent Karremans emphasised the urgency of resolving potential disruptions to customers and manufacturers across the continent.
What lies ahead for Nexperia and global trade tensions
As talks continue with the US to clear export barriers, the situation highlights a broader trend: governments are increasingly willing to intervene in high-stakes semiconductor supply chains amid geopolitical frictions. The Netherlands’ unprecedented use of a domestic act to manage a foreign-owned firm marks a notable escalation in the ongoing global debate about national security versus market freedom in tech supply chains.
China’s state media criticised Western powers for using security claims to justify what it described as “robbery in legal disguise,” reflecting a wider political standoff over technological advancement and global leadership in semiconductors. The episode underscores how governance, ownership, and export controls intersect in a fragile, globally interconnected industry.
Key takeaways
- US raised concerns about Nexperia’s Chinese CEO as early as June, warning of export risks to the US.
- The Dutch government invoked a rarely used law to take control of Nexperia amid fears of security-of-supply disruptions.
- Wingtech’s ties to China’s state apparatus and its ownership structure are central to the dispute.
- The move signals a growing willingness by Western governments to intervene in tech supply chains for national security reasons.
